Following the approval of the merger of IDFC Financial Holding with IDFC Ltd and IDFC Ltd into IDFC First Bank Ltd by the National Company Law Tribunal (NCLT), Chennai, shares of IDFC First Bank and IDFC Ltd increased by 2% in trading on 26 September.

IDFC First Bank in a filing with the exchanges, said, “We would like to inform you that the Hon’ble NCLT has sanctioned the scheme. The company is in the process of applying for availing certified true copy of the NCLT order and completion of requisite statutory/ regulatory formalities, in order to make the scheme effective.”

IDFC First Bank shares were trading at Rs 74 on the NSE at 9.15 am, up 1.3%. The share price of IDFC surged by 1.8% to Rs 111.85.

At a meeting called by the Chennai bench of the National Company Law Tribunal on 17 May 2024, the majority shareholders of IDFC First Bank accepted the merger of IDFC with the bank.

The Reserve Bank of India has granted its no objection certificate (NOC) for the combination of IDFC, IDFC FHCL, and IDFC First Bank, according to a statement released by IDFC on 27 December 2023. The IDFC board of directors accepted the planned amalgamations in July 2023.

The merger of IDFC Bank and Capital First to form IDFC First Bank was completed and announced in 2018.

Through its non-financial holding company, IDFC holds 39.93% of IDFC First Bank. Following the merger, the book value per share of the lender will jump by 4.9%, according to audited financial statements as of 31 March 2023.

Over the past year, IDFC First Bank’s stock has declined by 23%, while IDFC’s shares have declined in trade by 13%.

At 12:03 pm, the shares of IDFC were trading 1.37% higher at Rs 111.37 and shares of IDFC First Bank were trading 0.41% higher at Rs 73.32 on NSE.

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